Nature of the business the purpose and direction of the business, declared in the aims, mission, and objectives.
Organisational structure the tallness or flatness of the structure can create a certain culture.
E.g., authoritative, democratic etc.
Rewards proper remuneration can create a strong and united culture, without fair remuneration it can create workforce hostility.
Management styles the degree of centralisation in an organisations affects how workers deal with issues, and in what way.
Sanctions few sanctions can cause slack workers. However too much rigidness can cause resentment towards the organisation.
Frequently Asked Questions: Determinants of Organisational Culture
What are the determinants of organisational culture?
Determinants of organisational culture are the key factors or forces that shape, influence, and establish the shared values, beliefs, behaviours, and norms within an organisation. These can be both internal and external to the organisation.
What are the key factors that determine organisational culture?
Key factors include the organisation's founders and leadership, its history and traditions, the industry and business environment, the national culture, the types of technology used, the size and age of the organisation, and critical incidents or crises it has faced.
What are the internal determinants of organisational culture?
Internal determinants stem from within the organisation itself. These typically include:
- Founders and Leadership: Their vision, values, personalities, and behaviours set the initial tone.
- History and Traditions: Past events, rituals, stories, and established practices solidify certain norms.
- Structure and Systems: Organisational design, policies, reward systems, and communication channels influence how people behave and interact.
- People and Socialisation: The characteristics of employees and how new members are integrated into the company's way of doing things.
- Critical Incidents: Major successes, failures, or crises that the organisation has navigated.
What are the external determinants of organisational culture?
External determinants come from the environment outside the organisation and include:
- Industry Characteristics: The nature of the industry (e.g., highly competitive, regulated, innovative) influences required behaviours and values.
- National and Regional Culture: Societal norms, values, and legal frameworks of the country or region where the organisation operates.
- Economic Climate: Economic conditions can affect stability, risk-taking, and resource allocation, influencing culture.
- Technology: Advancements in technology can necessitate changes in communication, collaboration, and work methods, impacting culture.
- Customers and Stakeholders: Their expectations and demands can shape how the organisation operates and treats its people.
How do founders and leadership influence organisational culture?
Founders often embed their personal values and vision into the company from its inception. Leaders reinforce or modify this culture through their actions, priorities, what they reward or punish, and how they communicate the company's mission and values.
Is organisational culture the same as organisational climate?
No, they are related but distinct. Organisational culture refers to the deep-seated, shared beliefs, values, and assumptions that guide behaviour. Organisational climate is the shared perceptions among employees about the organisation's policies, practices, and procedures, often considered a manifestation or reflection of the underlying culture at a specific point in time.
Can organisational culture be intentionally determined or changed?
While influenced by many factors, culture can be consciously shaped and changed by leadership. This involves clearly articulating desired values, aligning systems (like hiring, training, rewards), leadership modelling desired behaviours, and communicating consistently over time. However, it's a complex and often slow process.